Churn
Churn rate
In one sentenceThe percentage of customers who cancel or stop buying in a given period.
What it means
Churn is the leak in the bucket. High churn means you must keep replacing customers just to stand still. Small improvements in churn have a big effect on LTV and growth.
How to use it
- Find out why people leave: ask every cancelling customer one question.
- Watch for early warning signs: low usage, missed meetings, unanswered emails.
- Onboarding matters most. Customers who get a quick win in the first weeks stay longer.
FormulaMonthly churn rate = customers lost during the month รท customers at the start of the month
How AI helps
AI can read cancellation reasons and support tickets and group them into the top themes, and flag at-risk customers from usage data.
Related terms
LTV MRR / ARR Sentiment Analysis
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